The Challenges of Managing Corperate Bank Account in Nigeria

The Challenges of managing Corporate account In Nigeria By OWOEYE OLADAPO JOHN Submitted as a term paper in partial fulfillment of ABSTRACT One of the main survival techniques of most banks is to ensure progressive increase in deposit base. These deposits do not just magically appear, rather driven via transactions created between banks and there numerous customers (both human being and artificial beings). The artificial customers are regarded as the corporate organisations who do business with the banks. Out of various means of doing business with Nigerian banks, opening of corporate account is key.

Corperate account is very important for every corporate entities to carry out her day to day financial obligation via banks. Even though banks see it as a edge for survival via various “charges et al” on transactions on those corporate accounts, the customers perspective of ensuring that the account is a is properly managed is a great challenge. Therefore, the research investigated the challenges of managing corporate bank account in Nigeria. Earlier research report were reviewed and data source were primary and secondary. and SPSS were used to analyze the data(with different statistical tools).

Conclusions and recommendations were made on research findings. Table of content 1. Introduction 1. statement of problem………………………………………………………… 2. objectives of the study………………………………………………………. 3. research questions…………………………………………………………… 1. 4research hypotheses…………………………………………………………… 1. 5 Significance of study…………………………………………………………… 1. 6 Scope of study…………………………………………………………… 1. 7 Limitation of Study…………………………………………………………… 2. 0 Literature review 2. 1 Banking Evolution in Nigeria………………………………………… 2. 2 Definition of bank account 2. 3 Types of accounts 2. bank account Management 3. 0 Methodology 3. 1 Introduction 3. 2 population of the study: 3. 3 Sampling size 3. 4 Sampling technique 3. 5 Research design 3. 6 Research instrument: 3. 7 Sources of data collection 4. 0 Data presentation,analysis and interpretation 4. 2 Data interpretation of variables 4. 3 Data interpretation 5. 0 Conclusion and Recommendation References CHAPTER ONE 1. 0INTRODUCTION The cash account management process (i. e. opening, maintaining, and closing account) is a very manual and paper based activity leading to high costs and inefficiencies for both bank customers and banks.

Despite some attempts to automate exchange of information, communication remains heavily paper based: for instance, required documents to open an account are sent – sometimes electronically – to the bank customer which fills them in and sends them back to the bank. As they most of the time require wet signature, these documents are sent back on paper by – express-mail to the bank which will then check them. Documents are at this stage scanned, bar coded and circulated between different bank departments which will update the customer information in their own back office applications.

These data entries require most of the time manual activities. (e. g. , 48 hours) (SWIFT:2008). Within Nigeria terrain, slow growth rate in technology development and its adoption are great threats to banks in ensuring service delivery to their numerous customers as at when due. While there could be other factors creating service delivery failure by banks, IT is key. However, while there are challenges for banks in ensuring service delivery and satisfaction, there is need to turn the table and look in to possible problems corporate organization could face in doing business with their banks.

In other to avoid ambiguitiness of research, streamlining of challenges basically to corporate account management cannot be over-emphasized. 1. 1STATEMENT OF PROBLEM The harsh economic environment under which most industries and banks operate today has posed serious challenges to management. Most industries are groaning helplessly under scarcity of cash caused by constant liquidity mop-up, low lending and high interest rates, as well as other unfavourable and unstable government policies. The banks in turn in the circumstances lack credible customers and customers in their own area face so many challenges with the banks.

Most firms confronted with high cost of raw materials accruing from high exchange rate. Raw material shortages lead to low industrial capacity utilization, low sales, dwindling profit and may invariably translate to retrenchment and inconsistency in managing corporate bank account activities of organizations. The question is, do the above problems (associated with raw materials scarcity and continuous changes in government policies) affect corporate, remuneration, training and development, retirement, termination, redundancy and career planning?

In the course of this study, other problems and the various challenges faced by corporate organizations in managing corporate bank account. 1. 2OBJECTIVES OF THE STUDY This research is simply aimed at identifying the challenges corporate organization faced in managing corporate account in Nigeria. And also aim at proving possible recommendations from findings. The focus of this research can be spelt out in terms of objectives stated below: 1. To analyze the concept of corporate organizations and show its relevance to managing corporate bank account. 2.

To discover how well Nigerian banks engage in managing corporate bank account. 3. To ascertain if economic depression affects holders/managers of corporate bank account. 4. To identify the various challenges faced by corporate bank account users. 5. To offer some suggestions leading to solution of identified challenges of managing corporate bank account problems. 3. RESEARCH QUESTIONS The research questions for this study includes 1. What are the challenges of managing corporate account in Nigeria? 1. What are possible mechanisms of managing the problems in operating corporate accounts? . Do banks undertake corporate account? 3. Is there any relationship between corporate bank account and corporate bank account users? 4. How does economic depression affect the holders of corporate bank account? 5. What corporate strategies do banks adopt to survive the economic depression? 1. 4RESEARCH HYPOTHESES Null Hypothesis: There are no challenges in operating and managing corporate bank account. Alternate Hypothesis: There are challenges in operating and managing corporate bank account 1. 5SIGNIFICANCE QF THE STUDY 1.

The findings will provide a tool for evaluating the effect of corporate bank account and policies on the organization or customers. 2. The results will improve the overall challenges of managing corporate bank account. 3. The results will promote greater awareness of the importance of effective corporate bank account management. 4. The result will add to information pool for managers/organizations and will guide them on effective utilization corporate bank account even in the event of economic depression. 1. 6SCOPE OF THE STUDY This study was limited to corporate bank account holders and management.

The choice of the Banks and customers was guided by the basic similarity in size of organization and capital base. They were selected to represent a spectrum of corporate bank account holders. 1. 7LIMITAT1ON OF THE STUDY The study was confined to ten (40) respondent operating corporate banks Account as well as the banks who give those corporate account. This was due to limited resources such as time and finances. On the whole, it is believed that the findings made in the sampled banks and customer will reflect the general trend of the corporate account planning strategies adopted by banks.

CHAPTER 2 LITERATURE REVIEW 2. 1 BANKING EVOLUTION IN NIGERIA Review on corporate accounts and its posed challenges in managing it would not be complete without the review on the evolution of the banking industry inNigaria. The Nigerian banking industry is regulated by the Central Bank of Nigeria,is made up of; deposit money banks refered to as commercial banks, development fiinstitutions and other financial institutions which refered to as commercial banks, development finance institutions and other financial institutions which include; micro-finance banks,finance companies,bureau de hanges, discount houses and primary mortgage institutions. Essentially the industry consists are 24 commercial banks,5 discount houses, 5 development finance institutions, 50 class A bureau de change, 598 bureau de change,98 Primary mortgage Institutions,84 finance companies and 914 Micro-finance institutions. The Cowry, for centuries,served our people as an important form of currency . In 1860 the following system was in use: 40 Cowries formed a “string”; 50 Strings made a “head” and 10 heads comprised a “bag”.

In lagos in 1865 one bag of 20,000 shells was exchanged for one or two English Pounds. The evolution of the banking system in Nigeria can be traced as far back as 1890 when the monetization of the Nigerian economy was growing side by side with barter trading. By then, the use of cash had grown sufficiently through out West Africa. The history of modern banking in Nigeria dates back to 1892 with the establishment of the African Corporation in lagos.

In 1983, merchants one of whom was Sir Alfred jones a shipping magnate from Liverpool, England took the initiative for the establishment of a bank in the Lagos office of the Elder Demester Company and with the support of the colonial government, the formation of Bank of British of West Africa (BBWA) was announced in May 1893 and started operation on March 31st 1894. BBWA incorporated in Liverpool, England then took over the African Banking Corporation. In 1956, BBWA was renamed Bank of West Africa to reflect the new independent status of the West African continent which it served.

In 1965, the Standard Bank of South Africa merged with Bank of west Africa and acquired businesses,including the banking operation in Nigeria; this caused a change of name to Standard of Bank of West Africa. in 1969, following changes in the ownership structure of the parent company (after merger) in the United kingdom, the bank was again renamed Standard bank of Nigeria Ltd(SBNL). Nigerians involved in trading business complained that the expatriate banks were unwilling to provide loans,charged too much for loans,and discriminationed against them in favour of European firms and later in favour of the Levantines.

They were unhappy about two aspects of the financial system: first, Nigerian savings, private and public, were invested in London rather that converted into lending in the country (Nigeria). Secondly, the bulk of lending was to European trading firms. It was these broader reasons that they found it difficult to finace their businesses. A demand for African banks sprang up. The first attempt of an indigenous bank in Nigeria was the establishement of the industrial Commercial Bank established in Lagos in 1929 only to be liquidated a year later.

After this, a couple of other banks were established; the Mercantile Bank- 1933, the National Bank of Nigeria -1948 now wema Bank, the African Development Bank Ltd later called African Continental Bank- 1948, the Nigerian Farmers and Commercial Bank -1949; but not all really survived,especially the confidence crisis of mid fifties. As at 1970, there were fourteen commercial banks in Nigeria ( both and indigenous) with 297 branches including NAL bank – 1960 which became the first Nigerian bank to belicensed as a merchant bank in 1969.

Though the banks offered basic banking services, they still could not compete with their counterparts abroad in innovation and service delivery. This prompted the coming of the “new generation banks” in the late seventies and early eighties following the adoption of a Structural Adjusted Programme (SAP) in 1986. These new generation banks,in the late eighties and early nineties brought level of competition into the banking industry introducing new banking technology, better and faster service delivery, novel innovations in deposit generating products which gave customers flexibility and ease banking.

There were management challenges confronting Nigerian banks since the advent of indigenous banks. This dragged into the mid nineties and caused unsolicited liquidations as banks fell under the axe of the Nigeria Deposit insurance Commision. In January 21 1994, Kapital Merchant Bank and Financial Merchant Bank and united Commercial Bank also fell under the axe of the NDIC. Failed banks are a heavy risk on deposit s and a shortcoming for any financial system anywhere in the world. Apart from the loss caused depositors,shareholders,employees and other stakeholders, it reduces confidence in the financial system generally.

Between 1994- 2000, 36 banks were liquidated by NDIC. The Federal Government in 1994 enacted the failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act 1994 and set up a tribunal, shich sat in Enugu, Nigeria, to try the management of failed banks in Nigeria. In July 2004, the governor of the Central Bank of Nigeria, Prof. Chukwuma Soludo, announced a new capital base of N25 billion for Nigerian banks from the previous N2 billion signaling the commencement of measuring to strengthen the Nigeria financial system and make Nigerian banks compete with other counterparts abroad.

The implementation of these measures made Nigerian banks to emerge as dominant financial institution in Africa. This move by the CBN proved decisive as six Nigerian banks made the list of top 1000banks in the world in 2008. Three banks also ranked amongst the top 2000 companies by Forbes in 2009. After a series of mergers, acquisition and liquidations, 2006, there were 25 banks in Nigeria that scaled the N25 billion hurdles and met the 31st December 2005 deadline.

On the August 2009, newly appointed CBN Governor, Sanusi LAmido Sanusi at a press conference after an emergency bankers committee meeting announced the sack of five bank Chief executives and another three on the 4th of October the same year after concluding a banking audit and stress tests. This was the first major signal that the Nigerian banking sector was not immune to the global financial crisis that started in the last quarter of 2007 and led to the liquidation of major US banks. The CBN went ahead to inject N520 billion in bailout funds into the eight banks. International Corporate research:2009) 2. 2 Definition of Bank account Bank accounts may have a positive, or debit balance, where the bank owes money to the customer; or a negative, or credit balance, where the customer owes the bank money. Broadly, accounts opened with the purpose of holding debit balances are referred to as deposit accounts; whilst accounts opened with the purpose of holding credit balances are referred to as loan accounts. (Wikipedia) Some accounts are defined by their function rather than nature of the balance they hold.

Bank accounts designed to process large numbers of transactions may offer credit and debit facilities and therefore do not sit easily with a polarised definition. These transactional accounts are called by different names in different countries: in the U. S. and Canada, they are called “checking accounts”; in the UK, they are termed “current accounts”. However, where these account are runed by corporate organizations, they are regarged as “Corporate accounts”. 2. 3 Types of account Cheque account

A cheque account is a bank account that uses cheque as the primary instrument for withdrawing money. With a cheque account, you can make purchases, pay bills, and give or loan money to anyone you choose. You can also use a cheque to transfer money from your cheque account to a bank account at a different financial institution. Corporate and current account could be cheque account. Savings account A savings account is another type of bank account that allows the holder to make deposits and withdrawals. However savings account holders are not able to access their money with cheques.

Many financial institutions allow savings account holders to make deposits and withdraw funds through ATM. Fixed deposit account/ time deposit/certificate deposit account Time deposits, frequently referred to as certificates of deposit (CDs), are bank accounts that require the account holder to make a deposit and agree to leave funds in the account for a specific amount of time. In return for this agreement, the financial institution pays interest to the account. Often, the interest paid on a CD is higher that the rate paid on other types of bank account.

The account holder is required to keep his or her money in the account until the specified term is over. However, some financial institutions allow account holders to withdraw interest, without affecting the principal. In some cases, account holders may be allowed to withdraw their principal funds before their CD matures, but a penalty is typically charged. Other types of account are: Transactional account Joint account Low-cost account Numbered bank account Negotiable Order of Withdrawal account Automatic transfer service account

Money market deposit account Individual Savings Account Tax-Exempt Special Savings Account Transaction deposit Nostro and vostro accounts personal account Overdraft Free Account 2. 4 Bank Account management In today’s global business environment, clients are often dealing with hundreds of bank accounts across the globe and with multiple banks. Due to the manual nature of the current account maintenance processes, opening and maintaining these accounts with up-to-date signatories can be an arduous and time-consuming process.

Some of this process is driven by local central bank requirements, but a lot is due to repetitive or duplicative processes at a local and regional level – because ‘that’s the way we have always done it’. The process can be highly paper-intensive, time consuming and, thus, expensive in both human capital and processing costs. (Adam, J. A. 2005) According to SWIFT(2008),Hereunder are the 3 main cases (Bank Account Management opening, maintenance andclosing request) showed from a high level perspective. They just show the principles of theprocesses. [pic] [pic]

Diagram adopted from :ISO20022BJ_BankAccountManagement [pic] Diagram adopted from :ISO20022BJ_BankAccountManagement 2. 4 Expectations of corporate organizations- (Expectation versus reality) Generally, every organizations want satisfaction in her businesses and with people/ institution they do businesses with. Theory has started to move away from the notion that corporate organisation switched banks as a result of perceiving banks as undifferentiated in their service offering. Now a more common reason to keep the bank is the positive feelings associated with a trong and stable relationship. Strong relationships that grow over the organisational life-cycle have several advantages for both parties; the risk decreases, customers become more satisfied and information and communication increases. Customers become more loyal and perceive the quality of serviceto be higher. (Madill et al. , 2002). However, in the reality sense of it, the expectations of corporate organisations in manging her corporate account are not commensurable with actual services received from banks. ( Maria Beradovic:2006). 5. Problems in managing account

Although the afformentioned points already give some indications on the problems banks and bankcustomer organizations face today, the business process analysis we already performed with thecommunity –banks and bank customer organizations- enable us to summarize current problemsas follows: • Long and painful process: on average, total elapsed time between account opening request and bank account activation will reach two to three weeks. Bank account maintenance and bank account closing should not be under-estimated with a corresponding average of 5 to 10 days.

These time lags do not help bank customer organizations meeting their business needs and bank customer treasurers to satisfy their internal customer demands; • Lack of standardization between banks: managing an account is not at all a common process and since organizations work on average with more than 20 banks, they have to invest time and effort in meeting specific bank demands in areas which are for their vast majority very similar; • These first two observations imply high degree of customer dissatisfaction that banks have decided to work on and to decrease; Low STP: bank account management process implies maintenance of information in back office systems of both banks and bank customer organizations. Today, and in the absence of standard and electronic format, this maintenance is mainly manual, slowing down the information maintenance process; • As a collateral, the importance of manual tasks involves a high degree of human error risk; • High costs: since current ways of working are heavily manual, paper based and lengthy, they do imply high processing costs mainly labor, archiving and mailing. (SWIFT:2008) CHAPTER THREE RESEARCH METHODLOGY 3. 1 INTRODUCTION

This chapter deals with the methods used in the gathering of research data and data analysis methods. Generally, research methodology is known to enhance the specification of the steps and procedures employed by a researcher in assembling the raw data for processing. According to Hawking D. T and Donald Tull (2002:267) Research methodology is defined as “the specification of procedures for collecting and analyzing the data necessary to help solve the problem at hand, such that the difference between the cost of obtaining various levels of accuracy and the expected value of the information associated with each level of accuracy is maximized.

This section stresses the connecting link between the theoretical perspective and quantitative approach utilized to address the structured sub-problem. It does this by following a pro-forma pattern decomposed into research design, research instrument design and data collection process and statistical design. 3. 2POPULATION OF THE STUDY: Queen (2002) defined population as an entire set of entities that comprise the group, or subgroup of subjects that are the object of study and in which the entire range of an outcome measured is represented. The populations, in this study are Users of corporate bank account. 3. 3SAMPLING SIZE

The sample size for this research is 30 (thirty) respondent randomly chosen to represent the population which is 40. The 40 respondents were selected from different sectors to include members of banks and some selected customers which can be relied upon for accuracy. 3. 4SAMPLING TECHNIQUE The random sampling method, according to Dan Ifeagwu (2001:20) “It is the careful categorization of sampling subject into status, educational level, sizes, weight, ages”. The random sampling method was used in this study. It was based on the gathering of information or data from the population or from the sample drawn from the population.

The sample subjects used were: sex, age, educational levels and positions. 3. 5RESEARCH DESIGN Research design is the base plan which guide in collection and analysis of the research. It is also the structuring of investigation aimed at identifying variable and their relationship to one another. It is simply the blue print that is used as a guide in collecting and analyzing research questions. This research work is descriptive in nature. Descriptive research is aimed at showing the relationship that exists between corporate bank accounts and the organization (Customers).

The usefulness of research design goes for because the research develops a mental image of the structure for gathering the data and the analysis that will be followed. 3. 6RESEARCH INSTRUMENT: The research instrument to be used is a close ended questionnaire. A questionnaire is defined as a set of question which is designed to gather data for analysis, the result of which is used to answer the research question. The questionnaire is divided into two sections: Section A, deals with the personal data or background of the respondents Section B, dealt on all relevant data needed for the research hypothesis. 3. SOURCES OF DATA COLLECTION The method of data collection is quantitative technique which includes the use of documented information on the subject matter and other existing journals and documents. The following are other methods used in data collection; Primary Data Collection; the primary source include the extensive use of questionnaire and personal interview carried out among the members operating corporate bank account. Secondary data collection; the researcher gathered much information from the library after extensive research in various textbooks, relevant published journals 3. 8METHOD OF DATA ANALYSIS

The response made from the data collected from questionnaires was analyzed and processed using simple statistical technique. Simple regression analysis will be carried out with the aid of statistical package for social scientists (SPSS) to analyse the data collected. The result of the SPSS will be tested with the standard Error test (SE), and the T-test will also be used to confirm the result. Mathematically this is expressed; Y=? +bx +u Where Y= Dependent variables ?= Independent variables bx= co-efficient of the independent variable u= stochastic variable CHAPTER FOUR DATA PRESENTATION, ANALYSIS AND INTERPRETATION . 1 INTRODUCTION This chapter deals with the analysis, presentation and interpretation of all data collected from the research survey. SECTION A: DEMOGRAPHIC ANALYSIS OF DATA Table 1Status of employment | |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |Junior Staff |22 |55. 0 |55. 0 |55. 0 | | |Senior Staff |18 |45. 0 |45. 0 |100. 0 | | |Total |40 |100. |100. 0 | | Source: Field work March 2010 From the table above, it shows that 22 of the respondents which represent 55% of the total respondents are junior staff while 18 of the respondents representing 45% of the total respondents are senior staff. This shows that majority of the respondents are junior staff as against the senior staff of the organization. Table 2Sex | |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |Female |24 |60. |60. 0 |60. 0 | | |Male |16 |40. 0 |40. 0 |100. 0 | | |Total |40 |100. 0 |100. 0 | | Source: Field work March 2010 From the above table, it shows that 24 of the respondents which represent 60% of the total respondents are female while 16 of the respondents representing 40% of the total respondents are male.

This shows that majority of the respondents are female as against the male counterpart. Table 3Age | |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |20-30 |8 |20. 0 |20. 0 |20. 0 | | |31-40 |12 |30. 0 |30. 0 |50. 0 | | |41-50 |9 |22. 5 |22. 5 |72. | | |51 and above |11 |27. 5 |27. 5 |100. 0 | | |Total |40 |100. 0 |100. 0 | | Source: Field work March 2010 From the above table, it shows that 8 of the respondents which represent 20% of the total respondents are aged 20-30 while 12 of the respondents representing 30% of the total respondents are aged 31-40. 22. 5% which is 9 of the total respondents are aged 41-50 and 11 respondents representing 27. % are aged from 51 and above. This shows that majority of the respondents are aged from 31-40 followed by 51 and above. Table 4Highest Educational Qualification | |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |Degree/HND |10 |25. 0 |25. 0 |25. 0 | | |NCE/OND |7 |17. 5 |17. 5 |42. | | |Others |10 |25. 0 |25. 0 |67. 5 | | |Ph. D/M. Sc |8 |20. 0 |20. 0 |87. 5 | | |Secondary |5 |12. 5 |12. 5 |100. 0 | | |Total |40 |100. 0 |100. 0 | |

Source: Field work March 2010 From the above table, it shows that 10 of the respondents which represent 25% of the total respondents are Degree/HND holders while 7 of the respondents representing 17. 5% of the total respondents are NCE/OND holders. 25% respondents which are 10 of the total respondents have other degree not specified in the table, 8 of the respondents which represent 20% of the total respondent are Ph. D/M. Sc holders and 5 representing 12. 5% of the respondents are secondary school certificate holders. This shows that majority of the respondents are Degree/HND and Other qualification holders.

Table 5 Corporate account increases the challenges faced by the account holders? | |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |Strongly Agree |7 |17. 5 |17. 5 |17. 5 | | |Agree |21 |52. 5 |52. 5 |70. 0 | | |Undecided |3 |7. 5 |7. |77. 5 | | |Disagree |6 |15. 0 |15. 0 |92. 5 | | |Strongly Disagree |3 |7. 5 |7. 5 |100. 0 | | |Total |40 |100. 0 |100. 0 | | Source: Field work March 2010 From the table above, it reveals that 7 of the respondents which represent 17. % said they strongly agree that corporate account increases the challenges faced by the account holders, while 21 of the respondents which represent 52. 5% said they agree that corporate account increases the challenges faced by the account holders. 3 respondents which represent 7. 5% are undecided, while 6 of the respondents which represent 15% said they disagreed and 3 respondents representing 7. 5 of the total respondents said they strongly disagree that corporate account increases the challenges faced by the account holders. Table 6 Do you agree that corporate account leads to high patronage? |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |Strongly Agree |20 |50. 0 |50. 0 |50. 0 | | |Agree |13 |32. 5 |32. 5 |82. 5 | | |Undecided |2 |5. 0 |5. 0 |87. 5 | | |Disagree |4 |10. |10. 0 |97. 5 | | |Strongly Disagree |1 |2. 5 |2. 5 |100. 0 | | |Total |40 |100. 0 |100. 0 | | Source: Field work March 2010 From the table above, it reveals that 20 of the respondents which represent 50% said they strongly agree that corporate account leads to high patronage; while 13 of the respondents which represent 32. % said they agree that corporate account leads to high patronage. 2 respondents which represent 5% are undecided, while 4 of the respondents which represent 10% said they disagreed and 1 respondent representing 2. 5 of the total respondents said they strongly disagree that corporate account leads to high patronage. Table 7 Do you agree that corporate bank account increases the profitability of the bank? | |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |Strongly Agree |25 |62. |62. 5 |62. 5 | | |Agree |12 |30. 0 |30. 0 |92. 5 | | |Undecided |1 |2. 5 |2. 5 |95. 0 | | |Disagree |1 |2. 5 |2. 5 |97. 5 | | |Strongly Disagree |1 |2. 5 |2. 5 |100. | | |Total |40 |100. 0 |100. 0 | | Source: Field work March 2010 From the table above, it reveals that 25 of the respondents which represent 62. 5% said they strongly agree that corporate bank account increases the profitability of the bank, while 12 of the respondents which represent 30% said they agree that corporate bank account increases the profitability of the bank. 1 respondent which represent 2. 5% is undecided, while another 1 of the respondents which represent 2. 5% said they disagreed and 1 respondent again representing 2. % of the total respondents strongly disagree that corporate bank account increases the profitability of the bank. Table 8 Economic depression has an effect in the maintenance of corporate account | |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |Strongly Agree |12 |30. 0 |30. 0 |30. 0 | | |Agree |11 |27. 5 |27. 5 |57. | | |Undecided |7 |17. 5 |17. 5 |75. 0 | | |Disagree |6 |15. 0 |15. 0 |90. 0 | | |Strongly Disagree |4 |10. 0 |10. 0 |100. 0 | | |Total |40 |100. 0 |100. 0 | | Source: Field work March 2010

From the table above, it reveals that 12 of the respondents which represent 30% said they strongly agree that Economic depression has an effect in the maintenance of corporate account, while 11 of the respondents which represent 27. 5% said they agree that Economic depression has an effect in the maintenance of corporate account. 7 respondents which represent 17. 5% are undecided, while 6 of the respondents which represent 15% said they disagreed and 4 respondents representing 10% of the total respondents said they strongly disagree that Economic depression has an effect in the maintenance of corporate account.

Table 9 Time lags do not help bank customer organizations meets their business needs and bank customer treasurers to satisfy their internal customer demands | |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |Strongly Agree |8 |20. 0 |20. 0 |20. 0 | | |Agree |9 |22. 5 |22. 5 |42. | | |Undecided |10 |25. 0 |25. 0 |67. 5 | | |Disagree |10 |25. 0 |25. 0 |92. 5 | | |Strongly Disagree |3 |7. 5 |7. 5 |100. 0 | | |Total |40 |100. 0 |100. 0 | | Source: Field work March 2010

From the table above, it reveals that 8 of the respondents which represent 20% said they strongly agree that time lags do not help bank customer organizations meets their business needs and bank customer treasurers to satisfy their internal customer demands, while 9 of the respondents which represent 22. 5% said they agree that time lags do not help bank customer organizations meets their business needs and bank customer treasurers to satisfy their internal customer demands. 10 respondents which represent 25% are undecided, while 10 of the respondents which represent 25% said they disagreed and 3 respondents representing 7. of the total respondents said they strongly disagree that time lags do not help bank customer organizations meets their business needs and bank customer treasurers to satisfy their internal customer demands. Table 10 Due to the manual nature of the current account maintenance processes, opening and maintaining these accounts with up-to-date signatories can be an arduous and time-consuming process | |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |Strongly Agree |18 |45. |45. 0 |45. 0 | | |Agree |11 |27. 5 |27. 5 |72. 5 | | |Undecided |5 |12. 5 |12. 5 |85. 0 | | |Disagree |4 |10. 0 |10. 0 |95. 0 | | |Strongly Disagree |2 |5. |5. 0 |100. 0 | | |Total |40 |100. 0 |100. 0 | | Source: Field work March 2010 From the table above, it reveals that 18 of the respondents which represent 45% said they strongly agree that due to the manual nature of the current account maintenance processes, opening and maintaining these accounts with up-to-date signatories can be an arduous and time-consuming process, while 11 of the respondents which represent 27. % said due to the manual nature of the current account maintenance processes, opening and maintaining these accounts with up-to-date signatories can be an arduous and time-consuming process. 5 respondents which represent 12. 5% are undecided, while 4 of the respondents which represent 10% said they disagreed and 2 respondents representing 5% of the total respondents said they strongly disagree that due to the manual nature of the current account maintenance processes, opening and maintaining these accounts with up-to-date signatories can be an arduous and time-consuming process. 4. DATA INTERPRETATION OF VARIABLES Variables Entered/Removed (b) |Model |Variables Entered |Variables Removed |Method | |1 |Corporate bank account |. |Enter | a All requested variables entered. b Dependent Variable: Challenges of Managing Corporate bank account Model Summary |Model |R |R Square |Adjusted R Square |Std. Error of the Estimate | |1 |. 773(a) |. 598 |. 87 |. 61621 | a Predictors: (Constant), Corporate bank account ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | | | |B |Std. Error |Beta | | | |B |Std. Error |Beta | | | |1 |(Constant) |. 800 |. 193 | |4. 153 |. 000 | | |VAR00002 |. 685 |. 091 |. 773 |7. 520 |. 000 | |a Dependent Variable: Challenges of Managing Corporate bank account R-squared= 0. 98 Using the simple linear regression model, the hypothesis is carried out. CBA= B0+B1CCBA+U Where CBA = Corporate Bank Account B0 = autonomous / intercept B1 = COEFFICIENT OF CCBA CCBA = Challenges of corporate Bank account U = stochastic factorA priori theoretical expectation B0>, B1>0 The regression result shows B0 = 0. 800 B1 = 0. 685 Therefore, we have that CBA= 0. 800+ 0. 685 Challenges of corporate Bank account Where 0. 800 = autonomous R-squared R- Squared = 0. 598 This shows the percentage of total variation of the dependent variable explained by the independent variable.

This implies that CBA has a positive effect on the Challenges of corporate Bank account. According to the analysis for the above regression, r-squared is 0. 598 (59. 8%), which is high. This shows that CCBA was significant enough to explain variation CBA. Determination of standard error According to our regression analysis; S. E (B1) = 0. 091; B1 = 0. 685 B1 = 0. 685 2 2 = 0. 3425 0. 091< 0. 3425 DECISION RULE FOR STANDARD ERROR (S. E) Standard error (B1)> B1/ 2 Accept null hypothesis and reject alternative hypothesis.

Standard error (B1)< B1/ 2 Accept alternative hypothesis and reject null hypothesis RESULT Both B0 and B1 satisfy the priori theoretical expectation. Therefore, for a variable to be statistically significant, the standard error (S. E) of its coefficient must not be less than half the value of the coefficient i. e. S. E (B1) Tt accept H1 reject Ho Tc < Tt reject H1 and accept Ho Tc= 4. 153 Tt= 1. 782 Tc>Tt 4. 153>1. 782 RESULT The result of the T-test confirms the earlier result. Therefore we accept the alternative hypothesis which states that there are challenges in operating and managing corporate bank account.

CHAPTER 5 CONCLUSIONS & RECOMMENDATIONS This is the final and concluding chapter of the study. All the recommendations, conclusions. and limitations of the study will be discussed and interpreted, based upon the findings of this study and related to the literature findings reported in chapter 2. 1. Conclusions and recommendations Based on the result of the findings, it could be deduced that corporate organizations encounters several challenges in managing corperate account in Nigeria. And the result of the findings also support earlier research report in chapter 2.

It could also be deduced that challenges such as long and painful process, lack of standardization, human error and high cost to mention a few are being faced by corperate organizations in the course of operating their cooperates account Opening and managing a corporate account should be a straightforward process, but this depends on the corporate’s needs and the structure of the accounts they require. The process involves many security measures – maybe more so now than ever before, given the strict regulations on banking and corporate governance, and compliance with anti-money laundering and financial crime prevention legislation.

These regulations provide a lot of chances and opportunities as well. Good communication between the corporate and the bank’s front and back offices, as well as user identification tools, such as signature verification and tokens that generate unique passwords, are helping to make the bank account management process as smooth as possible for corporates. The strengthened client-bank relationship will improve this process even more; a beneficial outcome for both parties. . It is therefore recommended that banks should trigger service delivery to suppress aforementioned challenges of their numerous customers by technology adoption.

Banks could adopt Electronic Bank accont Management(eBAM. ) References Adam, J. A. (2005) A Banking sector reform: The policy challenges of bank consolidation in Nigeria, A paper presented at the 46th Nigeria Economic society (NES) Annual conference, Lagos 23rd -25th August. Ojeaga, P. J. (2009) The impacts of Global financial crisis on Nigeria Banking Sector. Degree thesis in business Administration,SLU, Department of Economics. SWIFT (2008) business justification for the development of new unifi (iso 20022) financial repository itemsISO20022BJ_BankAccountManagement.

Standards DepartmentAvenue Adele, 11310 La Hulpe Belgium Queen (2002) Statistics for Business and economics (Sixth Edition), Pearson Education Inc. , Upper Saddle River, New Jersey, USA. GT news(2009) Managing bank account Risk. www. gtnews. com International cooperate Resaerch (2009) Nigerian banking History;issue 3,December 2009 Maria B(2006). Customer loyalty and satisfaction: A study of Swedbank’s small corporate clients in Gothenburg. Bachelor thesis inBusinessadministration:Jonkoping University.

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